Dividend Tax Calculator UK 2026/27 (10.75% Rate)

Calculate the tax on your dividends for the 2026/27 tax year. Dividend tax rates rose on 6 April 2026 to 10.75% for basic rate taxpayers and 35.75% for higher rate taxpayers; the additional rate stays at 39.35%. With a £40,000 salary, £5,000 of dividends now costs £483.75 in tax, £90 more than last year.

Dividend Tax Calculator 2026/27

10.75%, 35.75% and 39.35% after the £500 allowance · Updated 12 October 2026

Salary, pension and other taxable income

Before tax, for the 2026/27 tax year

Dividends received in 2026/27

Outside ISAs and pensions

Tax on your dividends

–

Personal Allowance: –
Dividends covered by your Personal Allowance: –
Dividend Allowance used (0%): –
Taxed at 10.75% (basic rate): –
Taxed at 35.75% (higher rate): –
Taxed at 39.35% (additional rate): –
Average rate on all your dividends: –
Same dividends in 2025/26: –
Total Income Tax incl. other income (England, Wales, NI): –

Assumes no savings interest and no pension contributions or Gift Aid that would extend your basic rate band. Scottish taxpayers pay the same dividend rates; their tax on other income differs.

Dividend tax rates for 2026/27

Tax band	Taxable income	Dividend rate 2026/27	2025/26
Personal Allowance	Up to £12,570	0%	0%
Dividend Allowance	First £500 of dividends	0%	0%
Basic rate	£12,571 to £50,270	10.75%	8.75%
Higher rate	£50,271 to £125,140	35.75%	33.75%
Additional rate	Over £125,140	39.35%	39.35%

How dividend tax is worked out

Your salary, pension and other income use up your Personal Allowance and tax bands first.
Dividends are added on top, so they are taxed at the rate of the band they fall into.
The first £500 of dividends is tax-free, but it still uses up part of your band.
If your total income is over £100,000, your Personal Allowance shrinks by £1 for every £2 above that, reaching zero at £125,140.
Dividends from shares held in an ISA or a pension are tax-free and don’t count.

Examples for 2026/27

England, Wales and Northern Ireland; no savings income or pension contributions
Other income	Dividends	Dividend tax 2026/27	2025/26	Increase
£40,000	£5,000	£483.75	£393.75	+£90.00
£60,000	£20,000	£6,971.25	£6,581.25	+£390.00
£12,570 (director’s salary)	£50,000	£8,396.25	£7,406.25	+£990.00
£90,000	£30,000	£10,546.25	£9,956.25	+£590.00

The company director example shows a common pay mix: a £12,570 salary uses the Personal Allowance, the first £500 of dividends is tax-free, £37,200 is taxed at 10.75% (£3,999) and the remaining £12,300 at 35.75% (£4,397.25).

How to pay tax on dividends

Up to £500: no tax to pay and nothing to report.
£500 to £10,000: tell HMRC. They can collect the tax by changing your tax code, or you can report it in a Self Assessment return if you already file one.
Over £10,000: you must register for and complete a Self Assessment tax return.

Scottish taxpayers pay the same dividend rates as the rest of the UK. Tax on savings interest also rises by 2 percentage points, but not until 6 April 2027.

FAQs

Why did my dividend tax go up this year?

The government raised the ordinary and upper dividend rates by 2 percentage points from 6 April 2026. The £500 Dividend Allowance and the income tax thresholds are unchanged, so the same dividends cost more tax.

Do pension contributions reduce dividend tax?

Personal pension contributions and Gift Aid donations extend your basic rate band, which can move dividends from the 35.75% band into the 10.75% band. This calculator does not include that, so your bill could be lower.

Related calculators

Sources

Figures current as of 12 October 2026

Each formula is checked against a separate test sheet with at least three worked examples. Results are estimates based on the numbers you enter and the published rules; your actual figures may differ. This is general information, not financial or tax advice.

Spotted a mistake? Contact us and we will fix it and update the date above.